Latest News surrounding Insurance Antitrust Litigation

(KMSP) – Children’s Hospitals and Clinics of Minnesota announced Monday it is ending its contract with Blue Cross Blue Shield of Minnesota effective on July 5, unless a new contract agreement is reached.

Children’s says Blue Cross is demanding a double-digit reduction in payments to the hospitals to provide care for patients insured through Medicaid.

“The reductions to Medical Assistance/Medicaid reimbursement rates proposed by Blue Cross would be financially crippling for Children’s,” said Todd Ostendorf, chief financial officer of Children’s Minnesota, said in a statement. “Accepting the proposed rates would threaten the viability of Children’s Minnesota and unfairly compromise the quality of care our patients and their families have come to expect from us. Unfortunately, the only option we felt we had was to terminate the contract and appeal to Blue Cross for reasonable reimbursement rates.”